City workers expect higher bonus in 2010

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CITY workers are approaching the bonus season with more confidence than they were last year thanks to an improvement in the financial services job market, according to two new reports.

City recruitment company Morgan McKinley found 88 per cent of City workers expected to receive a bonus, up six per cent from last year, while 73 per cent expect their bonus to be equivalent to at least 30 per cent of their annual salary.

A total of 48 per cent expect their bonus to be higher than last year, while 41 per cent expect it to be about the same.

A further 72 per cent of City professionals say they are more confident about their job prospects than last year.

Morgan McKinley found City job opportunities increased 23 per cent year-on-year from 3,843 jobs in August 2009 to 4,725 in September 2010.

Meanwhile, a survey by careers website eFinancialCareers.com found 57 per cent of City workers expected their bonus to be higher than last year, while one in five believe their bonus will be over 50 per cent higher than a year ago.

The majority (51 per cent) of bankers also believe most of their bonus will be paid in cash despite the recommendation by the Financial Services Authority (FSA) that cash payments should be limited to less than 50 per cent of a total bonus.

Half of City workers also expect to receive their full bonus rather than seeing some of it deferred. Only 28 per cent appear to know whether their firm has a clawback policy, said the website.

The survey results come as JP Morgan Chase prepares to report its third quarter earnings tomorrow, which typically include details of its bonus pool, effectively beginning the bonus reporting season.